Nestle India, on Monday, said Maggi noodles worth Rs.210 crore were being withdrawn from the market, while Rs.110 crore worth of finished and related material stocks remained at its factories and distribution centres.
The food safety regulator Food Safety and Standards Authority of India (FSSAI) had ordered Nestle to withdraw Maggi noodles after some samples were found to contain higher-than-permissible levels of lead.
Safe for consumptionThe company, however, has maintained that its popular instant noodles are safe for consumption even as it announced voluntary recall of the products.
“We are in the process of withdrawing Maggi noodles stock from the market and destroying it. The estimates ‘Sales Value’ of the stock in the market, including those with our trade partners is around Rs.210 crore. In addition, there were Maggi noodles and related materials in our factories and distribution centres when the withdrawal was announced and the estimated value of these is around Rs.110 crore,” the company said.
These were broad estimates because it was impossible to calculate the final figure while the withdrawal was taking place, the company said, adding there would be additional costs to take into account, for example bringing back stock from the market, transporting the stock to destruction points, destruction costs, and the like. The final figure would be confirmed at a later date.
“The above, and other unforeseen costs associated with this withdrawal, would be dealt with in line with the applicable accounting standards at the time of announcing the financial results on the due dates.”
Nestle had last week moved the Bombay High Court, challenging the FSSAI order.
Published - June 15, 2015 11:04 pm IST
